Who’s tipping what: the week’s best buys… …and some to hold, avoid or sell
Cranswick Investors’ Chronicle
Thanks to a booming poultry business, the meat producer has grown revenues and held margins – despite rising input costs and lower pork export volumes to China. Low cash is worrying, but it appears to be managing inflationary pressure. Buy. £32.04.
De La Rue The Times
After a period of upheaval, the banknote printer is recovering thanks to “game-changing” security features in polymer notes. There’s plenty of potential in its authentication arm for high-value global pharma brands. Buy. 99.8p.
Hollywood Bowl Group Investors’ Chronicle
Revenues have soared against pre-Covid levels, amid rocketing demand from bowlers. A relatively low-cost base helps mitigate inflationary pressures, and a Canadian acquisition should boost 2023 earnings. Buy. 243p.
Legal & General Group The Daily Telegraph
The FTSE 100 insurer benefits from a diverse business model. Financial stability enabled divis through the pandemic, while a focus on sustainable investment and housebuilding is a long-term growth driver. Yields 7.1%. Buy. 258.5p.
Merchants Trust The Times
This UK-focused investment trust delivers a high income as well as a capital return. Not for those with ESG concerns – holdings include Shell, BAE and cigarette-makers. A good track record and yields 4.8%. Buy. 566p.
Scottish Mortgage Investment Trust The Times
A regulatory clampdown on Chinese tech firms and the prospect of US rate rises have hit the investment trust, which specialises in backing highgrowth firms including Tesla. Risky, but rewards could be high. Buy. 741.2p.
Severn Trent The Sunday Telegraph
The water firm has reduced the impact of rising costs via selfgenerated energy and improved efficiencies. Inflation-linked revenues, fixed rate debt and rising asset valuation offer long-term appeal. Yields 3.5%. Buy. £29.39.
SSE The Mail on Sunday
SSE generates energy from everything from gas to waste. Shares have been volatile on windfall tax worries. Brokers are divided, but Berenberg is bullish, citing SSE’s “flexible generation” business and naming a £22 target. Buy £17.53.
Wickes Group The Times
Sales at Wickes’ DIFM (do it for me) arm rose 30.9% and the order book has doubled thanks to home improvements demand. Transforming into an integrated digital and serviceled business. Yields 5.8%. Buy. 193.3p.
Greencore Group Investors’ Chronicle
The food producer is “inching closer” to recovery, with rising revenues and profitability in the black. Entering the high season for prepared, chilled foods, and investing in automation. But these pluses are trumped by spiralling food prices. Sell. 112p.
N Brown Group Investors’ Chronicle
The fashion and homewares retailer, best known for JD Williams, Simply Be and Jacamo, is showing signs of recovery. Raising prices, but costs have increased and there’s an ongoing legal dispute with insurer Allianz. Sell. 32.95p.
Purplebricks Group The Times
The groundbreaking online estate agency has been through a torrid time of late. Shares are down from 500p five years ago, and an £8.8m annual loss is expected. The new boss needs to provide a workable recovery plan. Avoid. 17.98p